advantage to selling options?

[newwurldmn]

Why are you opining on things you don’t actually understand?

Yes, I can see your point exactly, don't worry...
And by the way I do not sell options, I swing trade the Forex.

 

[BAT31]

One of the most heralded retail traders to sell options was "Karen the Supertrader." She started off with $11,000 (or maybe it was $100,000) and ran it to $41,000,000.

Wonder whatever happened to her?

 

[destriero]

One of the most heralded retail traders to sell options was "Karen the Supertrader." She started off with $11,000 (or maybe it was $100,000) and ran it to $41,000,000.

Wonder whatever happened to her?

She spent $300K of investor's capital rolling DITM calendars to perpetuate her fraud. Imagine rolling calendar each month and throwing away 300K in cash simply to generate fees from the fraud.

 

[destriero]

NO!

It means that the BSM has been designed to produce options that are priced higher than they ought to be, just like a roulette at the casino has been designed to pay you less than the true mathematical odds.

Enough said.

Who/what "designates" that it produces overvalued option prices? The zero-biased roulette wheel is a house edge as you cannot bet on zero. So your analogy is rly fucking dumb.

Why are they priced higher than they "ought to be?" BSM derives the vol-figure from the price of the option.

OK, one last question for the expert. So if the XYZ 100-strike call is priced at 40% vol and it's worth only 30% vol, what do I do?

 

[Tradex]

One of the most heralded retail traders to sell options was "Karen the Supertrader." She started off with $11,000 (or maybe it was $100,000) and ran it to $41,000,000.

Wonder whatever happened to her?

You think successful options writers have the time (or even feel the need to) brag about their winnings and steady income on ET?

 

[Tradex]

Why are you opining on things you don’t actually understand?

That's quite an attitude, just who do you think you are exacltly, the designated option expert on ET?

 

[destriero]

That's quite an attitude, just who do you think you are exacltly, the designated option expert on ET?

You literally know nothing about volatility trading. You just splashed the pot holding 2-7 off suit before the flop.

 

[destriero]

You think successful options writers have the time (or even feel the need to) brag about their winnings and steady income on ET?

Sure, as you seem fine in offering advice that went full-retard from your first post here. Dude, stay clear of the options forum.

 

[gaussian]

Options writers also make money because the Black-Scholes model is flawed. In fact, I strongly suspect that it has been designed to profit the option sellers...

I can't think of a single person still using the BSM professionally. Moreover, the BSM was for european options. It's applications to American options are tenuous at best.

You think successful options writers have the time (or even feel the need to) brag about their winnings and steady income on ET?

You miss the joke. Karen the SuperTrader turned out to be a SuperFraud.

 

[Tradex]

Alright, I am done here, the rest is just conversation as they say.